Iva termination and future credit

Bazil20

Morning everyone. 

I am currently 43 months in to my iva and it is now not working for me anymore  I need to finance a new car as I have a new job in London and my car is not ulez compliant which is proving difficult with my iva. I am in a better financial position then when I took out the iva and the question I have is has anybody terminated/ failed their iva and managed to get finance for a vehicle while the iva still shows on your credit score as failed. I have offered a settlement figure that has been rejected twice. Now I feel my only option is to terminate and go back to my creditors directly. I understand the termination process may take 3/6 months as advised from my iva company who don’t seem to want to help me as they have already had all their fees paid. so I need to act sooner rather than later but I don’t want to jump out of the frying pan and into the fire. Any advice will be gratefully received. I have spoken to citizens advice and step change but both was unable to answer the question. I appreciate it may be individual depending on credit score but is it likely I can get finance once removed from the insolvency register? 

Thankyou.

matte134

I terminated my IVA end of Feb. My last payment was Dec and it was confirmed terminated May, so will take a good 6 months. 

I tried to get car finance after May (when my IVA was terminated) but they were asking for a letter from my practitioner for the credit, after explaining I had ended my IVA they said they couldn't lend. Weirdly on all my credit reports the IVA is showing as completed, rather than discharged, so I am waiting 3 months til the IVA has been removed from the registry and then going to try again. 

Since terminating my IVA in May though I have managed to obtain a couple of credit cards to build my rating back up and it's climbing quite quickly

sourcrates

My 21 year old Audi TT is ULEZ compliant, they can be bought for a few hundred quid, look at older Audi`s and other German cars and buy for cash, as you won`t get silly amounts of finance agreed with an IVA on your file.

ManyWays

Failing an IVA will not improve your credit record until it drops off after 6 years. 
how much have you offered as a settlement figure and why has it been rejected?

matte134

ManyWays said:

Failing an IVA will not improve your credit record until it drops off after 6 years. 
how much have you offered as a settlement figure and why has it been rejected?

Your credit record will improve even before the 6 year mark. In just 3 months since mine failed I've managed to improve my credit rating and have been offered credit from many companies. It will take longer and won't fully recover until after 6 years but it will improve.